Analysing the welfare impact of trade liberalization on agriculture: A study of rice producers in Vietnam

Positive impacts from trade liberalization on the welfare and poverty of farmers are much claimed but little evaluated, particularly for developing countries. Conceptual developments, qualitative analysis of value chains and econometric analysis of multidimensional poverty are combined to frame and estimate the varied impacts of trade liberalization on Vietnam’s rice sector. Investigations provide evidence of incomplete price pass-through, adverse employment channel effects and regional variations. Together these help explain the absence of expected gains for rice farmers and increases in household poverty after liberalization. The approach, methods and results presented can support more effective public policies in Vietnam and elsewhere